USD/JPY holds slightly higher ahead of European trading | Forexlive
As mentioned yesterday, you can’t really tell how panicky the broader market sentiment is feeling just by looking at major currencies in the past few sessions. USD/JPY is no different, even if the pair has fallen off from near 138.00 to a low yesterday of 132.25. From the daily chart, it just looks like a rejection off its 200-day moving average (blue line):
But as we see a calmer mood in broader markets – more specifically, the bond market – it is helping to see USD/JPY get a bit of a lift today. Price is up 0.5% to 133.80 as buyers look to snap a run of three straight days of losses since Thursday last week.
That said, it is still early in the day and as we have come to find out yesterday, a lot can change in the hours ahead – not to mention with the US CPI data coming up later as well.
For now, USD/JPY is very much tied to action in the bond market: